engleski

Measuring the inequality: recent situation in Bosnia and Herzegovina

This paper provides an analysis of inequality in both, consumption and income distribution in Bosnia and Herzegovina and its regions. First, the inequality in consumption distribution in Bosnia and Herzegovina and its regions for three waves of Household Budget Survey (2004, 2007 and 2011) was analysed. Second, it is compared the inequality in the country and its regions based on equivalised household consumption and eqivalised income approach. The following inequality measures were considered: the Gini coefficient, the Palma index and the Theil index. According to the research, all calculated indices bringing forward the trend of declining inequalities in consumption distribution in Bosnia and Herzegovina in the observed period. The similar situation appears in all regions with the exception of the Brcko District. The inequality in consumption distribution in the Federation of Bosnia and Herzegovina and Republika Srpska was also declining from 2004 to 2011, while in Brcko District all measures of inequality indicate a greater inequality in 2007. Inequality in consumption distribution was the highest in the Federation of Bosnia and Herzegovina and the lowest in the Brcko District. When compared consumption and income inequality, the Gini coefficient, Theil index and the Palma index show greater income inequality in all areas. The inequality in income distribution was the highest in the Republic of Srpska and the lowest in the Brcko District.

consumption inequality, income inequality, the Gini coefficient, the Theil index, the Palma index

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